NY SHIELD Act

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Key Point: The New York Attorney General’s Office (NYAG) reached a Consent and Stipulation Agreement with Dunkin’ Brands, Inc. (Dunkin), which obligates the company to implement and maintain a comprehensive information security program to protect customers’ private information. The terms of the consent agreement are similar to the terms New York reached with Zoom earlier this year regarding inadequate data security practices, and strongly resemble the reasonable security measures described in the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act).

Neither agreement mentions the SHIELD Act, but both agreements include promises to comply with key elements contained in it. These agreements, as well as California’s legislative efforts, are creating a baseline for future enforcement cases on the adequacy of information security programs and the promises companies make to protect consumer data.Continue Reading New York’s Investigation of Dunkin Donuts Results in a Promise to Abide by the SHIELD Act’s Requirements

Resulting in Zoom Promising to Implement an Information Security Program, Resembling the SHIELD Act

Key point: The Letter of Agreement between the New York Attorney General and Zoom Video Communications, Inc. provides insight into what the Attorney General may consider satisfying the Reasonable Safeguards requirement under the SHIELD Act.

On May 7, 2020 Zoom Video Communications, Inc. (Zoom) became the first company to experience one of the new enforcement tools available to the New York Attorney General’s Office (NYAG) under the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act).

The SHIELD Act took effect on March 21, 2020, and requires any person or business owning or licensing computerized data containing the private information of a New York resident “to develop, implement and maintain reasonable safeguards to protect the security, confidentiality and integrity of that private information.” GBL § 899-BB(2).Continue Reading Zoom’s Popularity Leads to New York Investigating Its Security Flaws

Key Point: The SHIELD Act increases the statutory penalties for knowing and reckless violations of the State’s data breach notification law. It also authorizes the NY Attorney General to pursue injunctive relief and monetary penalties against persons and businesses who fail to implement reasonable safeguards to protect New York residents’ private information.

On July 25, 2019, New York Governor Andrew Cuomo signed two bills related to data privacy and identity theft. In our June 24 post, we summarized the contents of the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act). The second signing was the Identity Theft Prevention and Mitigation Services bill. Highlights of the laws’ requirements and effective dates are described below.Continue Reading New York Expands the Data Security Requirements and Increases the Data Breach Penalties for Entities Holding New Yorkers’ Private Information

Key Point: If signed by the Governor, the legislation will require entities doing business in New York to implement and maintain reasonable safeguards to protect the security, confidentiality and integrity of private information.

As it closed its session, the New York legislature passed the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act). The bill, which the New York Attorney General’s (“AG”) office strongly supports, is now at the governor’s office for review. New York AG Letitia James stated New York will join the “increasing number of states that require reasonable data security protections, while being careful to avoid excessive costs to small business and without imposing duplicate obligations under federal or state data security regulations.”

If Governor Cuomo signs the bill, New York will build upon its existing data breach notification law, and add a new requirement for data custodians in the private and public sectors to adopt reasonable measures to safeguard sensitive data of New York residents.Continue Reading New York Poised to Expand Data Security Requirements for Entities Doing Business in the State